Announces Plans for Commercial Installation of HydroPlant™ in Mexico City

ATLANTA, GA--(Marketwired - March 07, 2014) - HydroPhi Technologies Group, Inc. (OTCQB: HPTG) ("HydroPhi"), a developer of water-based, clean energy technology that delivers improved fuel economy and reduced greenhouse gas emissions, today announced the expansion of transit bus field testing of the HydroPhi system to Guadalajara, Mexico. Rutas Unidas Federación de Transportistas Independientes de Mexico will conduct the field testing of the HydroPlant™ in Guadalajara on an initial two buses beginning in late April 2014. Guadalajara will represent the second large metropolitan area where the HydroPlant™ will be tested for public transportation.

The company also announced that it has received initial purchase orders from Rutas affiliates to begin commercial installations of the HydroPlant™ in Mexico City in the second half of this year. As previously announced the initial pilot testing of the HydroPhi system on Rutas Unidas' transit buses demonstrated consistent fuel savings in excess of 20% on buses equipped with HydroPhi's Hydroplant™ technology after four weeks of operation. HydroPhi and Rutas Unidas are continuing testing on additional transit buses in Mexico City.

Mexico City represents an addressable market of over 8,000 transit buses that should benefit from the Company's HydroPlant system. Of these transit buses, 2,750 are affiliated with Rutas Unidas. Guadalajara, Mexico is one of the largest metropolitan areas in Mexico, after Mexico City and on par with Monterrey. In Guadalajara, there is an addressable market of at least 2,500 transit buses that should benefit from the HydroPlant system, of which approximately 1,200 are affiliated with Rutas Unidas.

José Antonio Sánchez Escalante, President of Rutas Unidas, commented, "Although still ongoing, our pilot testing of HydroPhi's HydroPlant™ technology in Mexico City has been very successful. Based on these results, we believe the technology will be an invaluable addition to our transit buses, which is why we have decided to introduce HydroPhi's technology to our affiliates in Guadalajara. We look forward to beginning commercial installation of the HydroPlant™ on our buses in Mexico City, which will further improve our operating costs while reducing greenhouse emissions."

Roger M. Slotkin, CEO of HydroPhi, stated, "We are excited to expand testing to Guadalajara and look forward to a commercial roll out on Rutas' affiliated fleets in Mexico City. We believe these latest milestones further validate our technology, and reflect the significant environmental benefits, fuel savings, and high return-on-investment available for fleet operators. Our plan is to continue expansion across Mexico and Latin America, where there is very high demand for fuel and emission reduction technologies."

About Rutas Unidas

RUTAS UNIDAS, established in 1957, is the largest association of public transportation bus owners in Mexico. It centers its operations in Mexico City where it handles almost 25 percent of government authorized routes, with a mix of vans, micro and regular full size buses. Since 2007 it has been pursuing 'clean' solutions for its different types of fleets that meet both profitability and environmental targets in the immediate future.

About HydroPhi

HydroPhi Technologies Group, Inc. (HPTG) is a developer of water-based hydrogen fuel production systems. The Company's technology isn't a fuel cell, nor is it a hydrogen alternative to traditional hydrocarbon fuels. The system utilizes distilled water for the production of hydrogen and oxygen, which is then injected into the air intake of an engine utilizing carbon-based fuels such as diesel, unleaded gasoline and natural gas. HPTG's technology, (HydroPlant™) has been company tested with resulting reduced vehicle operating costs by improved fuel efficiency up to 20%, while lowering greenhouse gas emissions up to 70%. By using an on-board, on-demand electrolysis system to separate hydrogen and oxygen from water, the technology eliminates the need for high-pressure hydrogen storage or hazardous chemicals while producing a stable, inexpensive alternative fuel source. By offering a real-time monitoring system as part of a hydrogen fuel solution with retrofit capability into standard vehicle engines, HPTG provides fuel efficiency to a potentially broad spectrum of users, including logistics, trucking, heavy equipment, marine and agriculture. Additional information about the Company and the technology is available at: www.hydrophi.com.

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